. Medical and Hospital News .




MILPLEX
After 2 years, BAE 'close to sealing Typhoons deal'
by Staff Writers
Riyadh, Saudi Arabia (UPI) Jun 19, 2013


Britain's BAE Systems, Europe's biggest defense company, reportedly expects to wrap up a price deal with Saudi Arabia for 72 Eurofighter Typhoon combat jets after two years of tortuous negotiations.

But with the Muslim holy month of Ramadan, during which the Arab world pretty much shuts down, beginning in early July, BAE may have to wait until August for a conclusion.

Another factor is the Saudi monarchy's human rights record, which has been criticized by British lawmakers in recent months amid hefty and persistent media coverage of allegations of corruption in Riyadh.

In May, the British newspaper The Guardian published documents released by Britain's court of appeal concerning allegations two Saudi princes were involved with a London company that allegedly facilitated money laundering for Hezbollah in Lebanon, an Iranian-backed movement designated a terrorist organization by the United States.

The two princes, who deny the allegations linking them to a sworn enemy of the Saudi monarchy, had sought to obtain a court ruling of sovereign immunity that would have blocked publication of the documents.

In another case, a prominent member of the Saudi royal family is at the center of a U.S. criminal investigation into whether Barclays, a leading British bank, made improper payments in the kingdom, apparently involving a son of King Abdullah.

The Saudis agreed to buy 72 Typhoons in 2007 with a reputed price tag of $8.6 billion.

BAE was secretive about the price details and admitted in December 2012 the delays in completing negotiations on the so-called Salaam Program were depressing its year-end earnings.

The first 24 were delivered in 2012 and 48 more were supposed to be assembled in Saudi Arabia, which is striving to develop a defense industry of its own.

But Riyadh decided to continue having the Typhoons assembled at BAE's facility in the United Kingdom and to upgrade the last 24 aircraft it ordered with the latest technology.

This altered the pricing process, and made the contract more valuable.

But BAE's expectations the Saudis would sign up to the price changes as well as the general inflation in prices the project had already absorbed were soon dashed.

That came hard on the heels of the October collapse of a proposed $40 billion merger with EADS, the Franco-German builder of the Airbus and Europe's aerospace giant.

British Prime Minister David Cameron, who has aggressively pushed British arms exports, visited Riyadh in November 2012 to press the Saudis to finalize the 2007 Typhoon deal.

There have been reports the kingdom is interested in buying 48- to 72 more Tranche 3 Typhoons, a deal that would be worth $7.3 billion to $11.2 billion.

The Eurofighter consortium comprises BAE, EADS and Finmeccanica of Italy, but BAE takes the lead in marketing in the gulf where Britain was the dominant power until 1972 when it reduced its military presence east of the Suez.

However, the Saudis are committed to buying 84 Boeing F-15S Eagles and dozens of helicopters from Boeing and Sikorsky Aircraft, a division of United Technologies Corp., for $33.4 billion as part of a massive U.S. arms package to counter Iran.

BAE concluded a $4.07 billion contract with the Persian Gulf sultanate of Oman in December to buy 12 Typhoons and eight Hawk advanced jet trainers starting in 2017.

That deal got BAE out of the hole, helping to safeguard some 6,000 jobs in the United Kingdom after the EADS merger plan fell through, largely because of German opposition, that would have sheltered the defense titan from the effects of shrinking defense budgets in the United States and Europe.

Meantime, the negotiations with the Saudis dragged on and BAE's delivery rate of the Typhoons slowed to nearly zero, with only two of the jets reaching in the kingdom in more than a year.

Deliveries are now back on track, raising expectations of a conclusion to the complex pricing problem.

There are plans to establish a maintenance and upgrade facility in Saudi Arabia, but BAE executives have their eyes on the ultimate prize: that the kingdom will double its Typhoon order.

.


Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Get Our Free Newsletters
Space - Defense - Environment - Energy - Solar - Nuclear

...





MILPLEX
Israel, Pakistan deny reported arms deals, but ....
Beirut, Lebanon (UPI) Jun 14, 2013
Israel and Pakistan have denied Islamabad bought military equipment from the Jewish state, following a British government report alleging Israeli arms were exported to several Muslim countries from 2008 to 2012. The report listed the countries as Pakistan, Egypt, Algeria, the United Arab Emirates and Morocco, only one of which, Egypt, with diplomatic relations to the Jewish state. ... read more


MILPLEX
Australia costs from natural disasters to soar: study

Satellite data will be essential to future of groundwater, flood and drought management

China work safety probe finds 'many' problems: official

Sandbags and raw nerves as flood peak hits Germany

MILPLEX
Raytheon's latest air traffic management systems go into continuous operation

Raytheon's Satellite Air Navigation System marks 10 years of continuous service in the US

Raytheon unveils Excalibur with dual-mode guidance

Faster, More Precise Airstrikes Within Reach

MILPLEX
Stone Age technological and cultural innovation accelerated by climate

New language discovered in Australia gives development insights

Geographic context may have shaped sounds of different languages

Penn Research Indentifies Bone Tumor in 120,000-Year-Old Neandertal Rib

MILPLEX
Pesticides significantly reduce biodiversity in aquatic environments

S.Korean airlines ban shark fin as cargo

New study shows predators affect the carbon cycle

Philippines set to destroy ivory tusks

MILPLEX
Taiwan reports H6N1 bird flu case

Children suffer as Pakistan battles measles epidemic

Measles epidemic sweeps northern Syria: MSF

US program marks birth of one millionth HIV-free baby

MILPLEX
US lashes China, Russia for human trafficking

NYU denies Chen forced out over China tie-up

China arrests man who planned Tiananmen protest: wife

Activist says China pressured New York University

MILPLEX
New Moldova P.M. Leanca says country remains on pro-EU course

Global cybercrime ring targeted by Microsoft and FBI

Report: Belgian army sold helicopters to firm linked to trafficking

US feds 'kidnapped' suspected druglord: Guinea-Bissau

MILPLEX
China manufacturing hits nine-month low in June: HSBC

German 2014 budget deficit set to be halved

Outside View: As Federal Reserve meets, folks should trim spending

Outside View: Banks cooking up another financial crisis




The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement